Off the Blocks, Vol 30, Aug 28, 2018
|Aug 29, 2018||Public post|| 1|
Volume 30, Aug 28, 2018
At Proteum, we are dedicated to understanding tomorrow's "Internet of Value" and the stories highlighted by this newsletter are usually at the beginning of a new tech or business model uniquely enabled by blockchains. It is worth every executive's time to map their blockchain strategies and get an overview of the rapidly changing tech, business and regulatory landscape.
Quote of the Week
"Businesses tell us that they don’t want to be left behind by blockchain, even if at this early stage of its development, concerns on trust and regulation remain. Blockchain by its very definition should engender trust."
- Steve Davies, Blockchain Leader, PWC
Financial institutions and tech companies have invested in blockchain or consortia-basedblockchain projects to transform payments, clearing, and settlements (PCS), including how funds are transferred and how securities, commodities, and derivatives are cleared and settled.
Switching to blockchain could eliminate inefficient processes and unnecessary costs, but the digital transformation comes with risks that finance professionals will have to manage. It's imperative for professionals to invest in blockchain education because of the complexity and emerging nature of the technology.
China has signed a deal with SSC to incorporate blockchain based financing as part of its drive to replace conventional buses with electric buses by 2021. SSC will specifically provide “fixed income lease financing-based products” through its regulated network, which will in turn provide NTS with regulatory-compliant blockchain finance products. The partnership will run for 3 years and is valued at $24B.
The Securities and Exchange Commission rejected requests to list nine cryptocurrency funds, citing continuing concerns about manipulation and market surveillance. The SEC has repeatedly urged exchanges and wannabe issuers to address the risks that ordinary investors face from the manipulation of an unregulated market.
Blockchain offers a whole range of benefits to both the public and private sectors, with less time needed to make decisions, improved data accuracy, disintermediation in business processes and staffing. Many organizations can implement blockchain, but it is important to bear in mind that its ultimate use comes from when there are several counterparties that need to have data consistency through consensus, and generally do not trust each other. As such, blockchain becomes an independent source of datathat unifies data sets, and is accessible to all on the same level.
Atlas Protocol (ATP) plans to develop a blockchain ecosystem and “construct a new paradigm of interactive marketing.” The press release states that ATP allows for the ranking of “onchain targets' value and enabling value circulation through tokens,” with the use of the ATP Smartdrop service application. The multi-million dollar investment round, whose final amount was not disclosed, included participation from Softbank, Baidu Ventures (BV), Danhua Capital, and Fenbushi Digital.
Smartlands joins the stakeholders of the Stellar network: SDF, IBM, Mobius.network, Stronghold, Satoshipay, and others by launching the validator on the Stellar network. The validator helps secure the network and validate transactions allowing the Smartlands Platform to exchange information with the Stellar network directly. Smartlands’ validator contains Stellar ledger, which is also used by other validators to reach consensus. Stellar is the only notable platform that is using the Federated Byzantine Agreement to reach consensus so far.
Indiegogo is promoting a new real estate scheme, where people can buy shares of the St. Regis Aspen hotel, in the form of digital tokens. The hotel is looking for $18 million of investment in security tokens. Accredited investors can buy Aspen Coins through an SEC-registered broker-dealer using US dollars, Bitcoin or ether. “Imagine real estate — not everyone can own a piece of it. But with this method, they potentially could.”
The World Bank is expected to settle its first blockchain-based bond worth $73 million this month. Australia's Commonwealth Bank (CommBank), which was selected as the sole arranger of the issuance by the World Bank early in August, said the bond is to be transacted on Aug. 28. Engineered to bring a 2.2 percent return, the two-year bond – dubbed "Bondi" – is the first exploration by the World Bank into using blockchain as the supporting technology for automating the issuance process among multiple parties.
Proteum is global blockchain advisory firm that works with public, private and start-up companies to help them transition into the world of blockchains and decentralized applications. We help companies strategically build their capabilities so that they can own and control their future. Let's put blockchains to work for your business.
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